Answer:
The annual YTM will be = 0.07518796992 or 7.518796992% rounded off to 7.52%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
C is the coupon payment
F is the Face value of the bond
P is the current value of the bond
n is the number of years to maturity
Lets assume the par value is 1000.
Current value = 1000 * 109% = 1090
Coupon payment = 1000 * 0.085 * 6/12 = 42.5
Number of periods remaining till maturity = 14 * 2 = 28
semi annual YTM = [ (42.5 + (1000 - 1090 / 28)) / (1000 + 1090 / 2)
semi annual YTM = 0.03759398496 or 3.759398496% rounded off to 3.76%
The annual YTM will be = 0.03759398496 * 2 = 0.07518796992 or 7.518796992% rounded off to 7.52%
Answer:
Empirical Rule or 68-95-99.7% Rule
Approximately 95% of the data fall within two standard deviations of the mean.
The correct answers are, $1200 and -$200.
Sydney has taken depreciation on the shelves of $300. The amount of basis and the amount of the gain or loss recognized on the sale of the shelves are $1200 and -$200 respectively.
Explanation:
Fair market value at the date of conversion = $1,500
Depreciation on the Shelves = $300
Basis = Fair market value - Depreciation
Basis = $1500 - $300 = $1,200
So Basis = $1,200
Now
Sale Price of Shelves = $1,000
Adjusted Basis = $1,200
Loss would be = Sale price - Adjusted Basis
Loss = $1000 - $1200
Loss = -$200
So, Loss = $200
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Explanation:
Productivity is the efficiency of a machine or a man to convert any raw material into finished products. The conversion of raw materials into useful outputs is termed as productivity.
Basically, how much output a man or a machine can give in a specific time period which is a useful output is productivity. Many industries or companies pays their employees on the basis of productivity. Efficient uses of labour, capital, raw material to bring effective and efficient outputs.
A risk premium is a measure calculated to reflect the riskiness of future profits. is The metric denotes the difference between the expected return on a market portfolio and the risk-free rate. The value of a firm is larger the lower is the risk premium used to compute the firm's value.
